Of course, you know you need to build business credit, right? And in your travels, you’ve come across a credit term: net 30 accounts. But what, precisely, is a net 30 account, anyway? And, why is it so important to improve your business cash flow and grow your business credit?
What is a Net 30 Account?
Net 30 is an invoice payment term. It means: here’s your bill, I expect payment (net amount) in full in 30 days. That’s calendar days, and not business days. Hence, if you receive an invoice on August first, then under net 30 payment terms it is due on August 31st.
If you are ever paying an invoice with snail mail, be sure to check with the vendor. They might count the postmarked date as the day they received your payment. But they might not.
Another synonym for this exact situation is trade lines. These accounts help with business cash flow.
1. Uline
Uline is a well-known net 30 vendor. They distribute shipping, industrial, and packing materials throughout North America.
To qualify for vendor credit with Uline, you need:
- A Fundability Foundation™
- Business bank account
- Business phone number listed in National 411
- A good credit profile with D&B is preferred, but not required
To apply, create an account first, then place an order and select Net 30 term. Their credit department will review the account and may change to a few prepaid orders before granting net terms. A stronger application may be approved for net 30 at the time of order.
They report to D&B and Experian. Read our full Uline net 30 review here.
2. eCredable
eCredable is a company that helps you turn bills into business credit tradlines.
With their support, you can get many vendor tradelines on your account.
How?
Their primary focus is helping you build credit by reporting your subscription as a tradeline.
They also help you report third-party bills. This makes it possible to build business credit faster by taking advantage of bills that would not be reported without their service.
Figure out which subscription is best for you and apply online. Business Lift offers the above while Business Lift+ offers additional financial insights and performance forecasts.
They report your monthly subscription to D&B, Equifax, and Experian. They also report third-party bills to Equifax and Creditsafe.
3. FairFigure
FairFigure simultaneously helps businesses build credit and tap into funding.
Their first offering is their business credit monitoring service. This helps you track your progress and offers additional benefits like their business credit corrector to dispute and fix errors rapidly.
This feature-packed subscription also comes with access to the FairFigure Capital Card. It’s an EIN-only business credit builder card that extends financing based on monthly recurring revenue.
It requires no personal guarantee. You don’t need good business credit to get started either. These services get you two vendor tradelines.
Anyone can apply online for their business credit monitoring service. If you want a FairFigure Capital Card, all you’ll need is:
- A business that’s been operating for at least three months.
- A minimum monthly revenue of $2,500.
They report both card activity and your monthly subscription to the SBFE, Equifax Commercial, CreditSafe, and their own Foundation Report.
4. The CEO Creative
The CEO Creative sells low-priced electronics, swag, and office supplies. You can also create marketing materials (like business cards) with them.
You will need to pay a yearly membership fee of $79, and they will require a minimum $40 cash purchase before they will report. Note: they are not going to report the annual membership fee to any business credit bureau.
To qualify for business credit with The CEO Creative, you will need:
- A Fundability Foundation
- Business bank account
- Business phone number listed in National 411
- At least 30 days in business
Apply online or over the phone.
This business account will report to Equifax and CreditSafe.
5. Creative Analytics
Creative Analytics sells products like desk accessories and small appliances. But they are also a digital marketing agency.
You will need to pay a yearly membership fee of $79, and they are going to require a minimum $100 cash purchase before they will report. Note: the annual membership fee counts toward that minimum.
To qualify for trade credit with Creative Analytics, you will need:
- A Fundability Foundation
- A D-U-N-S number from Dun & Bradstreet
- Business bank account
- No derogatory business reporting or delinquencies
- At least 30 days in business
Apply online.
This net 30 account will report to Equifax and CreditSafe. This is our full Creative Analytics net 30 review.
6. Grainger Industrial Supply
Grainger Industrial Supply sells hardware, tools, and janitorial supplies. They also offer fleet maintenance.
To qualify for a business credit card with Grainger Industrial Supply, you need:
- Fundability Foundation™
- D&B D-U-N-S number
- Business must be registered to Secretary of State at least 60 days
If your business doesn’t have an established credit, they will require additional documents like accounts payable, income statement, and balance sheets. There’s no minimal order amount to report, but Grainger prefers if a business has at least a $50 payment history.
Apply online or over the phone.
This net 30 account reports to Dun & Bradstreet. Read our full Grainger net 30 review here.
7. Supply Works
Supply Works, now called Home Depot Pro, sells PPE, plumbing supplies, and lighting products.
To qualify for business credit, you need:
- Fundability Foundation
- Trade and bank references
- At least one year in business (note exception below)
They will not accept a virtual address.
For under one year in business, they require at least two prepaid orders using their credit cards within 90 days. You must be an active web customer for 90 days to apply for Net 30. No minimum order required.
Apply online by filling out a credit application and emailing it.
This net 30 account reports to Experian.
8. Advance Auto Parts
Advance Auto Parts is an automotive aftermarket parts provider. They sell parts and accessories to both professionals and the do-it-yourself customer. Advance Auto Parts also offers project guides, articles, and how-to videos.
To qualify for trade credit with Advance Auto Parts, you need:
- Fundability Foundation
- A D&B D-U-N-S number
- All necessary business licenses
Your initial limit will be $1,000. Since this net 30 provider also offers net 7, check your application carefully and ask questions to be sure you are getting net 30 terms.
Apply in person at a branch.
This net 30 account reports to Dun & Bradstreet.
9. Wilmar
Wilmar is another net 30 account which is associated with Home Depot. But do not apply for more than one account associated with Home Depot.
They sell maintenance supplies exclusively for apartment housing. This includes paint, appliances, window treatments, door locks, and products for swimming pools and grounds maintenance.
To qualify for a business credit card with Wilmar, you need:
- Fundability Foundation™
- A D-U-N-S number with D&B
- At least one year in business
Note they will not accept a virtual address.
Apply online by filling out a credit application and emailing it.
This net 30 account reports to Experian.
10. Hardware Express
Hardware Express is also associated with Home Depot. They work as fill-in supplier for an industry that includes hardware retailers, home centers, and building supply and mobile home retailers. They sell water heaters, HVAC products, ducting, and pipe fittings along with other plumbing supplies.
To qualify for a Hardware Express business credit card, you need:
- Fundability Foundation
- A D-U-N-S number with D&B
- At least one year in business
But note that Hardware Express will not accept a virtual address.
Apply online by filling out a credit application and emailing it in.
This net 30 account will report to Experian.
11. HD Supply
HD Supply sells hand tools, power tools, concrete products and accessories, rebar fabrication, fasteners, connectors, erosion control materials, pipes and fittings, waterproofing needs, drywall accessories, and products to keep work crews safe.
There are also tool repair service or rental forms, braces, hardware and decorative stamps at many of their locations.
To qualify for trade credit with HD Supply, you will need:
- Fundability Foundation™
- EIN number from the Internal Revenue Service
- D&B D-U-N-S number
- Bank reference
- Good Equifax business credit score
- At least one year of credit reporting
Apply online.
This net 30 account will only report to Equifax. You can read our full HD Supply Net 30 Review here.
12. Barnett
Barnett is also associated with Home Depot. They sell plumbing supplies, PPE, and HVAC supplies.
To qualify for vendor credit with Barnett, a business owner will need:
- A Fundability Foundation
- Trade/bank references
- A good Experian business credit history and prefer $5,000 – $10,000 credit established in your Experian business credit report. Must have strong business credit history on all trade lines—no late payments or past due accounts
- At least one year in business
Barnett will not accept a virtual address.
Apply online by filling out a credit application and emailing it.
This net 30 account reports to Experian.
13. CDW
This last net 30 account is helpful for businesses to have. However, it is not exactly an easy approval account. Expect their tighter qualifications to lead to a denial if you apply too soon.
CDW sells hardware and software, and integrated IT solutions like security, cloud, data center and networking. They also offer services like configuration, data, cyber security, and can help a business set up its employees to work from home.
Since you are going to need to have at least two years in business, be patient with this one, and make sure to tackle CDW only after all of the others.
If you can meet their requirements (below), and have been managing your business credit history well, this vendor will essentially become an easy approval net 30 account.
To qualify for a credit account with CDW, you need:
- Fundability Foundation
- EIN number from the Internal Revenue Service
- D&B D-U-N-S number
- All business licenses necessary for operations (if required by your industry and/or locale)
- Your business must have a good D&B PAYDEX score of 80 or higher
- At least 2 years in business
Apply over the phone.
This net 30 account only reports to Dun & Bradstreet.
Ask Your Current Suppliers for Net 30 Terms
Did you know you can talk to your current suppliers and ask if they will grant your business net 30 terms?
Most vendors do not report positive payment experiences to any credit bureau for small business. Yet they report negative experiences like late payments and out and out defaults.
Your best chances of success lie with suppliers you have been working with for a while, say, at least one calendar year. A supplier you’ve already built a trusted relationship with will be far more inclined to listen to you.
You should be up to date with all of your invoices—a good customer. That is another way to increase your chances of a supplier seriously considering such a proposal.
Always be reasonable, but aim to ask for the higher end of what you need. This is a negotiation. That means some back and forth as you come to payment terms that work for client and supplier alike.
For instance, if you need more time than your normal 15-day payment terms, ask for 30 days—but probably not 45 to start.
Also, there’s nothing stopping you from asking current vendor credit suppliers if they would consider starting to report to a business credit bureau.
How Do Net 30 Accounts Help You Build Business Credit?
One of the best things about net 30 vendor credit accounts is they are easy to get. And if you build a Fundability Foundation™ before applying, many of these business credit applications should sail right through.
Given some of the above time in business requirements, it makes sense to use those days wisely and build such a foundation. With some accounts, such as Uline and Creative Analytics, you may need to prepay some orders or meet a certain minimum spend amount.
Again, it’s a good use of your time to make necessary purchases for your small business as you go.
And we only mean necessary purchases. But if you’re going to buy toilet paper, paint, or a microwave for the office kitchen, why not purchase them from a net 30 vendor which will report your positive payment experiences?
How does it all work? Buy what you need from several net 30 vendors. Make an early payment before the 30 days end. They report your on-time payment to one or more of the business credit bureaus.
In about 90 days, your on-time payment shows up in your business credit score, causing it to go up.
And then? You do it again.
Takeaways
For startups and other businesses beginning the business credit building process, net 30 accounts are an ideal way to start off strong.
With easy qualification, products you can use, and brands you trust, net 30 vendors help improve small business cash flow. You might even score an early payment discount!
